Alibaba's stake in Changxin memory parent company's domestic DRAM memory chip gets help again.

Recently, Ruili Integrated Circuit Co., Ltd. (hereinafter referred to as "Ruili Integration") has undergone industrial and commercial changes, with the addition of 19 shareholders, such as Alibaba, Oriental Capital Management, China Post Insurance, PICC Capital, Sunshine Life Insurance and so on.

It is understood that Ruili Integration was established in June 2016. after the legal representatives are Zhao Lun, Alibaba and other investors, its latest registered capital is about 48.576 billion yuan, and it is an integrated circuit developer. It is mainly engaged in the production, research and development, design and sales of integrated circuits and related products.

Tianyan check APP shows that this round of financing is Ruili integrated C+ round financing.

It is worth mentioning that domestic DRAM manufacturer Changxin Storage Technology Co., Ltd. (hereinafter referred to as "Changxin Storage") is the only wholly-owned subsidiary of Ruili Integration.

A chip investor pointed out that Ali's move is to support the domestic storage industry, Changxin Storage is the only mass production of self-developed DRAM chip production line and company.

Another chip industry investors said that to get rid of the reality is the general trend, Ali to invest in the layout of physical manufacturing and key areas.

It is understood that DRAM has always been the best medium for memory because of its small size, low price, high integration, low power consumption and fast reading and writing speed. However, in this field, Samsung of South Korea, SK of South Korea and Meguiar of the United States have monopolized the market for a long time.

Founder Securities pointed out that from the perspective of concentration, the market share of Samsung, Hynix and Micron has increased significantly since 2006, and the concentration has increased rapidly, rising rapidly from 61.9% in 2005 to 95.5% in 2018, showing a "tripod" trend.

Guotai Junan also said in a research report that China imported more than $90 billion worth of memory chips in 2018, including Samsung, SK Hynix and Micron, while domestic manufacturers accounted for 0%.

Until 2019, Changxin Storage became the first and only supplier of mass-produced DRAM chips in China. In 2018, Changxin Storage developed the first domestic 8Gb DDR4 chip, which was mass-produced in the third quarter of 2019 and launched to the market in 2020. At present, it has been adopted by Weigang Technology, Jiangbolong FORESEE and other storage brand manufacturers.

In terms of production capacity, there is still a gap between Changxin storage and large international companies. Changxin Storage has achieved the target of 45000 wafers per month and 60, 000 wafers per month in 2020 and 2021 respectively, and its production capacity target is 120000 wafers per month in 2022. According to TrendForce's previous forecast, Samsung's production capacity will exceed 555000 wafers per month in 2021, while SK Hynix and Meguiar will exceed 360000 and 355000 wafers per month, respectively.

In order to increase production capacity, Changxin Storage is planning to build two more fab plants. According to previous media reports, in June 2021, the 12-inch fab of Changxin Storage Phase II held a groundbreaking ceremony and planned to build three wafer plants in three phases, with an estimated production capacity of 360000 wafers per month at the end of the third phase.

In terms of chip technology, Samsung announced mass production of 14 nm DRAM chips in October 2021. Changxin Storage is mainly produced by the 19-nanometer process, and plans to launch 17-nanometer DDR5 and LPDDR5 chips in 2022.

Tianyan check APP shows that Ruili integration, the parent company of Changxin storage, has completed many rounds of capital increase before. In September 2021, Zhaoyi Innovation announced an increase of 500 million yuan to Ruili Integration. In December 2020, the second phase of the National Integrated Circuit Industry Investment Fund, Xiaomi Yangtze River Industrial Fund, Anhui State-owned assets, Zhaoyi Innovation and other shares in Ruili integration, with a total financing amount of 15.65 billion yuan.

After the completion of this round of financing, the number of shareholders of the company reached 48, and the shareholding ratio of new shareholders was not disclosed. Prior to this, the top three shareholders of Changxin Storage were Hefei Shixi Power Collection Enterprise Management Partnership, Hefei Changxin Integrated Circuit Co., Ltd., and the second phase of the National Integrated Circuit Industry Investment Fund.